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Airlines Warn Fare Increases Likely as Iran War Drives Fuel Price Surge

Major U.S. airlines report record bookings this year despite jet fuel costs rising by over 50%, driven by strong demand and partial fuel price hedging, executives said.

  • On Tuesday, Delta Air Lines, American Airlines and United Airlines told investors that strong ticket sales help offset higher fuel costs, with all three reporting record bookings this year.
  • Argus Media data show jet fuel rose to $3.93 per gallon after the war broke out, according to Argus Media, from $2.50 the day before.
  • Delta CEO Ed Bastian said the jet-fuel surge adds roughly $400 million in costs so far, with jet fuel typically making up about a quarter of operating costs and fuel hedging only partially covering exposure.
  • Airlines are preparing to build fuel costs into fares or tweak add-on fees as industry analysts say fare hikes are inevitable, with long-haul international routes most exposed.
  • Strength has been broad this year, with early sales surging in all segments as American CEO Robert Isom said demand will continue through April and May.
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ts2.tech broke the news in on Tuesday, March 17, 2026.
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